Unit 1 1. Legally, businesses can be organized as sole proprietorships, partnerships, or corporations. In your own words, briefly describe each of these legal entities. Then, pick one and explain the advantages and disadvantages of using this form of business organization. Things to be aware of when doing business in other countries: 1. Legal 2. Political 3. Social 4. Cultural 5. Economic environments Intercontinental barriers include 1. Quotas – restrictions on the number of certain products imported 2. Embargoes – banning of exports and/or imports of a product or all products to a particular country 3. Tariff – Tax on imported products Difference between a free-market economy and a planned economy are a planned economy relies on a centralized government to control most factors of product and allocation decisions.

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